A 9-point scorecard separating fundamentally strong companies from deteriorating ones across profitability, leverage, and efficiency signals.
Formula: F1 ROA>0 | F2 CFO>0 | F3 ROA↑ | F4 CFO>ROA | F5 Leverage↓ | F6 Liquidity↑ | F7 No Dilution | F8 Gross Margin↑ | F9 Asset Turnover↑
How to read it: With all 9 signals: 7–9 = strong · 3–6 = mixed · 0–2 = weak. Piotroski's paper bought 8–9 and shorted 0–1. Six signals need prior-year data; with fewer signals the library rates the share of available signals met and says the score is partial. This playground uses 4 signals (F1–F4).
Developed by accounting professor Joseph Piotroski in 2000. His original paper showed that buying high-score stocks and shorting low-score stocks generated 23% annual returns over 20 years.